Contact Us For A Free Consultation (312) 238-9650 or (772) 242-9330

UBS Financial Services Inc. lost again in another arbitration claim regarding Puerto Rico closed-end municipal bond funds, this time for $18.6 million.

This marks the largest award involving Puerto Rico bond funds to date, according to FINRA.

The FINRA arbitration claim was filed in 2014 by two UBS clients, Mercedes Imbert De Jesus and Rafael Vizcarrondo, who initially sought $19 million in compensatory damages and $1.2 million in commissions and fees, according to the FiINRA arbitration award dated December 3. The claimants alleged breach of fiduciary duty, breach of contract and other securities violations, according to the award.

Jesus and Vizcarrondo will receive $12.7 million in compensatory damages and interest of $2.5 million. They will also receive $3.2 million in attorneys’ fees and $163,000 in expert witness fees.

Puerto Rico has been struggling to hold off a widespread default on its debt since the summer of 2013 when Detroit filed bankruptcy and the market for Puerto Rico’s $70 billion muni debt dropped out.

If you are concerned about your investment in Puerto Rico bonds and would like to speak to a securities attorney, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.